Khammam housed the second largest chilli market in the Telugu-speaking states of Telangana and Andhra Pradesh: Reports
NALGONDA: Chilli powder and red chilli products will become hotter as prices of the dry red chilli see a sharp rise in the wholesale markets.
Reduction in the cultivation area of red chilli and decreased yield prompted a sharp rise in its price.
Khammam housed the second largest chilli market in the Telugu-speaking states of Telangana and Andhra Pradesh. The maximum price fetched by the dry red chilli at Khammam market is ₹23,150 per quintal for AC red chilli (kept in cold storage) and ₹16,300 per quintal for non-AC red chilli.
The price of AC teja red chilli has increased to ₹23,150 from ₹21,300 in a week and it is likely the price would further increase after the Diwali festival.
The prices of red chilli would depend on their varieties.
Farmers were waiting to sell their crop to get a better price. This led to the storage of 7.4 lakh bags of dry red chilli in cold storages. The farmers from Bhadradri-Kothagudem, Mahabubabad, Warangal, Nalgonda, Suryapet district and the boarding districts from Andhra Pradesh would bring the dry red chilli to the Khammam chilli market for sale.
The unit of Chenguang Biotech (India) Pvt Ltd, a China-based spice processing firm located at Mudigonda in Khammam, has been purchasing dry red chilli from Khammam market in large quantities.
The traders, who would purchase red chilli at the Khammam market, would transport the crop to West Bengal, Bihar and Uttar Pradesh.
The Khammam district stood third in Telangana in production of dry red chilli. Due to various reasons, the area under chilli in this district has been reducing year by year. In 2026, some 18,626 farmers took up chilli cultivation in 29,433 acres. But, the area under chilli in the district was 69,808 in 2022.
The Super El Nino and unseasonal rains are likely to impact the standing chilli crops in the district.
Farmer B Ramesh said weed would fill the agricultural field if it was left without cultivation. The chilli nursery planted in his one and half acres at Konijerla was damaged due to adverse weather conditions. The farmers were already getting a good price for the harvested dry red chilli, but the production of chilli would significantly decrease this time, causing losses to them, he added.
District horticulture officer Madhusudhan said there existed a chance for an increase in the area under chilli in the district as dry red chilli is fetching a high price.
